MERCANTILISM : The (more advanced) countries in Europe used this policy during Colonial America. It is really a policy that states that a country's power is tied to its wealth.
-It stated that money was needed to purchase some goods that are vital to the country. Money was in the form of gold. Bottom line, "More money more better" :P
Example of Mercantilism: England wanted gold, so they established colonies in America. America didn't have a lot of gold, but they could produce cotton and tobacco.
-England bought cotton cheap and didn't allow America to produce cloth. England sold the finished cloth to America and to their rival, France. England got their gold and depleted part of France's gold reserve. So, it was a win-win for England.
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